- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Outstanding mortgage principle, must have a value. there are cases where the value is at 0.00
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Outstanding mortgage principle, must have a value. there are cases where the value is at 0.00
Value for what purpose -- to compute allowable mortgage interest deduction? for estate filing and distribution of assets? or what ?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Outstanding mortgage principle, must have a value. there are cases where the value is at 0.00
So what do I put as it wants a number when we paid off the mortgage???
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Outstanding mortgage principle, must have a value. there are cases where the value is at 0.00
OK....If you are working on your 2019 tax return, that box 3 entry for the Form 1098, is actually the balance on 1/1/2019
….ie at the start of 2019, before you paid it off.
If you had your 1098 already, you'd see that it is, or should be, a positive-bigger number. If you don't have your 1098 yet, just estimate a number for now, and Make Sure you return to the form in January to correct it.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Outstanding mortgage principle, must have a value. there are cases where the value is at 0.00
Seems like a software programming oversight. If this is a qualified home equity loan, your balance can be zero on Jan 1, 2019 and zero on Dec 31, 2019, and still have a qualifying interest expense.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Outstanding mortgage principle, must have a value. there are cases where the value is at 0.00
@robertppoppe , yes , it is possible but highly unlikely. The programming is generally geared to tackle most common situations and the text of this particular provision in the statute is also written the same way --- while it does not disallow, it assumes the usual scenario of a new or existing mortgage with a term longer than one year -- the typical being 30 years. If your case is such that mortgage was started after Jan 1 and was paid off before the end of the same year, you would have to have help Turbo by manipulating numbers by hand --- note that the reason the for the requirement of the Jan 1 and Dec 31st amounts is to compute the average indebtedness for the year ( TCJA ).
Hope this helps
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Outstanding mortgage principle, must have a value. there are cases where the value is at 0.00
Will there not be an issue with the return if the value given for Item 2, Outstanding mortgage principal, does not agree with the Lenders Form 1098?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Outstanding mortgage principle, must have a value. there are cases where the value is at 0.00
Yes, your entry into TurboTax for box 2 of your Form 1098 should match the number on the actual 1098 you received from the lender.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Outstanding mortgage principle, must have a value. there are cases where the value is at 0.00
I have this exact issue too. "If this is a qualified home equity loan, your balance can be zero on Jan 1, 2019 and zero on Dec 31, 2019, and still have a qualifying interest expense."
I appreciate your answer, but I do not think is explains how to handle this situation when it does exist. How do I handle this situation where box 2 is $0.00?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Outstanding mortgage principle, must have a value. there are cases where the value is at 0.00
You can put in box 2 $1 for the balance on the loan and it will not affect your overall tax return and the program will give you the deduction for interest on the loan.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Still have questions?
Or browse the Forums